Portfolio Additional Estimates Statements 2016-17

Part C: Agency Additional Estimates Statements — Agency name

PortfolioAdditional

Estimates Statements 2016-17

TreasuryPortfolio

Explanations of Additional Estimates 2016-17

ISBN 978-1-925504-28-6

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TREASURER

PARLIAMENT HOUSE
CANBERRA 2600

President of the Senate

Australian Senate

Parliament House

CANBERRA ACT 2600

Speaker

House of Representatives

Parliament House

CANBERRA ACT 2600

Dear Mr President

Dear Mr Speaker

I hereby submit Portfolio Additional Estimates Statements in support of the
2016-17Additional Estimates for the Treasury Portfolio.

These statements have been developed, and are submitted to the Parliament, as a statement on the funding requirements being sought for the Portfolio.

I present these statements by virtue of my ministerial responsibility for accountability to the Parliament and, through it, the public.

Yours sincerely

The Hon Scott Morrison MP

Abbreviations and conventions

The following notations may be used:

NEC/necnot elsewhere classified

nil

..not zero, but rounded to zero

nanot applicable (unless otherwise specified)

nfpnot for publication

$m$ million

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are as a result of rounding.

Enquiries

Should you have any enquiries regarding this publication please contact Mr. Robert Twomey, Chief Finance Officer in the Department of the Treasury on (02)6263 2111.

Links to Portfolio Budget Statements (including Portfolio Additional Estimates Statements and Portfolio Supplementary Additional Estimates Statements) can be located on the Australian Government Budget website at

User guide
to the
Portfolio Additional
Estimate Statements

User Guide

The purpose of the 2016-17Portfolio Additional Estimates Statements (PAES), like that of the Portfolio Budget Statements (PB Statements), is to inform Senators and Members of Parliament of the proposed allocation of resources to government outcomes by entities within the portfolio. The focus of the PAES differs from the PB Statements in one important aspect. While the PAES include an Entity Resource Statement to inform Parliament of the revised estimate of the total resources available to an entity, the focus of the PAES is on explaining the changes in resourcing by outcome(s) since the Budget. As such, the PAES provides information on new measures and their impact on the financial and/or nonfinancial planned performance of programs supporting those outcomes.

The PAES facilitate understanding of the proposed appropriations in Appropriation Bills (Nos. 3 and 4) and Appropriation (Parliamentary Departments) Bill (No. 2)
2016-17. In this sense the PAES is declared by the Additional Estimates Appropriation Bills to be a ‘relevant document’ to the interpretation of the Bills according to section15AB of the Acts Interpretation Act 1901.

Whereas the MidYear Economic and Fiscal Outlook(MYEFO) 2016-17 is a midyear budget report which provides updated information to allow the assessment of the Government’s fiscal performance against its fiscal strategy, the PAES update the most recent budget appropriations for entities within the portfolio.

Structure of the Portfolio Additional Estimates Statements

The PAES are presented in three parts with subsections.

User guide
Provides a brief introduction explaining the purpose of the PAES.
Portfolio overview
Provides an overview of the portfolio, including a chart that outlines the outcomes for entities in the portfolio.
EntityAdditional Estimates Statements
A statement (under the name of the entity) for each entity affected by Additional Estimates.
Section 1: Entityoverview and resources / This section details the changes in total resources available to an entity, the impact of any measures since Budget, and impact ofAppropriation Bills Nos. 3 and 4.
Section 2: Revisions to outcomes and planned performance / This section details changes to Government outcomes and/or changes to the planned performance of entityprograms.
Section 3: Special account flows and budgeted financial statements / This section contains updated explanatory tables on special account flows and staffing levels and revisions to the budgeted financial statements.

Contents

Portfolio overview...... 3

Entity additional estimates statements...... 7

Department of the Treasury...... 11

Australian Competition and Consumer Commission...... 33

Australian Taxation Office...... 53

Portfolio overview

Portfolio Overview

Portfoliooverview

There has been no significant change to the portfolio overview, portfolio responsibilities or entity outcomes from that included in the Portfolio Budget Statements 2016-17 (pages 3-4).

Additional estimates are being sought for the Department of the Treasury, the Australian Competition and Consumer Commission and the Australian Taxation Office. Explanations of the additional estimates for these agencies are detailed in their respective section in the Portfolio Additional Estimates Statements.

There are no additional estimates for the Australian Bureau of Statistics, the Australian Office of Financial Management, the Australian Prudential Regulation Authority, the Australian Securities and Investments Commission, the Commonwealth Grants Commission, the Inspector-General of Taxation, the National Competition Council, the Office of the Australian Accounting Standards Board, the Office of the Auditing and Assurance Standards Board, the Productivity Commission or the Royal Australian Mint.

Figure 1: Treasuryportfolio structure and outcomes

Figure 1: Treasury portfolio structure and outcomes (continued)

Portfolio Overview

Entityadditional estimates statements

Portfolio Overview

Department of the Treasury

Section 1: Entityoverview and resources...... 11

1.1Strategicdirection statement...... 11

1.2Entity resource statement...... 11

1.3Entity measures...... 15

1.4Additional estimates and variations...... 16

1.5Breakdown of Additional Estimates by Appropriation Bill...... 17

Section 2: Revisions to outcomes and planned performance...... 18

2.1Budgeted expenses and performance for Outcome 1...... 18

Section 3: Special account flows and budgeted financial statements...... 19

3.1Special account flows...... 19

3.2Budgeted financial statements...... 20

Additional Estimates Statements — Department of the Treasury

Department of the Treasury

Section 1: Entityoverview and resources

1.1Strategic direction statement

There has been no significant change to the strategic direction of the Department of the Treasury (the Treasury) from that outlined in the Portfolio Budget Statements 2016-17 (pages 11-12).

The Treasury is seeking an additional $3.7million in departmental funding through Appropriation Bill (No.3) 2016-17. This includes an additional $1.1million for the establishment of the Black Economy Taskforce measure outlined in the Mid-Year Economic and Fiscal Outlook 2016-17and $0.7million for the Strategy for Managing National Security Risks in Critical Infrastructure measure.

1.2Entityresource statement

The Entity Resource Statement details the resourcing for the Treasury at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2016-17 Budget year, including variations through Appropriation Bills No.3 andNo.4,Special Appropriations and Special Accounts.

Table 1.1: Department of the Treasuryresource statement — Additional Estimates for 2016-17 as at Additional Estimates February2017

Table 1.1: Department of the TreasuryResource Statement — Additional Estimatesfor2016-17 as at Additional Estimates February2017(continued)

Prepared on a resourcing (that is, appropriations available) basis.

Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement.

(a)Appropriation Act (No. 1) 2016-2017 and Appropriation Bill (No. 3) 2016-2017

(b)Excludes $1.073million subject to administrative quarantine by Finance or withheld under section 51 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

(c)Estimated retained revenue receipts under section 74 of the PGPA Act.

(d)Departmental capital budgets are not separately identified in Appropriation Act (No.1) and form part of ordinary annual services items. Please refer to Table 3.6 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.

(e)Appropriation Act (No. 2) 2016-17.

(f)Excludes 'Special Public Money' held in accounts like Other Trust Monies accounts (OTM), Services for Other Government and Non-agency Bodies accounts (SOG) or Services for Other Entities and Trust Moneys accounts (SOETM)). The Actuarial Services Special Account was sunset on 1October2016. For further information on special accounts, see Table 3.1.

Table 1.1: Department of the Treasury resource statement — Additional Estimates for 2016-17 as at Additional Estimates February 2017(continued)

Third party payments from and on behalf of other entities

(g)These payments relate to National Partnership payments to the states.

1.3Entity Measures

Table 1.2 summarises new Government measures taken since the 2016-17 Budget. The table is split into revenue, expense and capital measures, with the affected programidentified.

Table 1.2: Entity2016-17measures since Budget

(a)This measure was announced in Budget 2016-17 as a cross-portfolio measure and has not previously appeared in a portfolio statement.

(b)Further information can be found in the press release of 2 December 2016 issued by the Treasurer.

Prepared on a Government Financial Statistics (fiscal) basis.

1.4Additional estimates and variations

The following table details the changes to the resourcing for the Treasury at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates resulting from new measures and other variations since the 2016-17 Budget in Appropriation Bills Nos.3and4.

Table 1.3: Additional estimatesand other variations to outcomes since 2016-17 Budget

(a)As announced in the 2016-17 Budget, the Public Sector Transformation and the Efficiency Dividend is a cross-portfolio measure.

1.5Breakdown of additional estimates by appropriation bill

The following table details the Additional Estimates sought for the Treasury through Appropriation Bill No. 3.

Table 1.4: Appropriation Bill (No. 3) 2016-17

Section 2:Revisionstooutcomesandplannedperformance

2.1Budgeted expenses and performance for outcome 1

Outcome 1: Informed decisions on the development and implementation of policies to improve the wellbeing of the Australian people, including by achieving strong, sustainable economic growth, through the provision of advice to government and the efficient administration of federal financial relations

Budgeted expenses for Outcome 1

This table shows how much the entity intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Administered and Departmental funding sources.

Table 2.1 Budgeted expenses for Outcome 1

(a)Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013.

(b)The Actuarial Services Special Account was sunset on 1 October 2016.

(c)Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses, make good expenses, audit fees, and resources received free of charge.

Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

Section 3: Special account flows and budgeted financial Statements

3.1Special account flows

Estimates of special account flows

Special Accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1 shows the expected additions (receipts) and reductions (payments) for each account used by the Treasury.

Table 3.1: Estimates of special account flows and balances

(a)The balance of the CEFC special account was transferred to the Department of the Environment and Energy as a result of the restructuring and administrative arrangements on 21 September 2015.

(A) = Administered

(D) = Departmental

3.2Budgeted financial statements

3.2.1Analysis of budgeted financial statements

The Treasury is budgeting for a break-even result, after non-appropriated expenses such as depreciation are removed, in 2016-17.

The Treasury has a sound financial position and has sufficient cash reserves to fund provisions, payables and asset replacement, as they fall due.

3.2.2Budgeted financial statements

Table 3.2:Comprehensive income statement (showing net cost of services) for the period ended 30 June

Table 3.2:Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)

(a)From 2010-11, the government introduced net cash appropriation arrangements where Appropriation Act No. 1 or Bill No. 3 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Act No. 1 or Bill No. 3 equity appropriations. For information regarding DCBs, please refer to Table 3.6 Departmental.

Prepared on Australian Accounting Standards basis.

Table 3.3: Budgeted departmental balance sheet (as at 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.4: Departmental statement of changes in equity — summary of movement (Budget Year 2016-17)

Prepared on Australian Accounting Standards basis.

Table 3.5: Budgeted departmental statement of cash flows (for the period ended 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.6:Departmental capital budget statement(for the period ended 30June)

Additional Estimates Statements — Department of the Treasury

Table 3.7: Statement of asset movements (2016-17 Budget year)

(a)‘Appropriation equity’ refers to equity injections or Administered Assets and Liabilities appropriations provided through Appropriation Act (No.2) 2016-17, including CDABs.

(b)‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Act (No.1) 2016-17 and Bill (No.3) 2016-17 for depreciation/amortisation expenses, DCBs or other operational expenses.

(c)Net proceeds may be returned to the OPA.

Prepared on Australian Accounting Standards basis.

Additional Estimates Statements — Department of the Treasury

Table 3.8: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.9: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.10: Schedule of budgeted administered cash flows (for the period ended 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.11: Schedule of administered capital budget(for the period ended 30June)

Prepared on Australian Accounting Standards basis.

Additional Estimates Statements — Department of the Treasury

Australian Competition and Consumer Commission

Section 1: Entity overview and resources...... 33

1.1Strategic direction statement...... 33

1.2Entity resource statement...... 33

1.32016-17 measures since Budget...... 35

1.4Additional estimates, resourcing and variations to outcomes...... 36

1.5Breakdown of Additional Estimates by Appropriation Bill ...... 37

Section 2: Revisions to outcomes and planned performance...... 38

2.1Budgeted expenses and performance for Outcome 1...... 38

Section 3: Special account flows and budgeted financial statements...... 40

3.1Special account flows...... 40

3.2Budgeted financial statements...... 41

Additional Estimates Statements — Australian Competition and Consumer Commission

Australian Competition and Consumer Commission

Section 1: Entityoverview and resources

1.1Strategic direction statement

The Australian Competition and Consumer Commission (ACCC) is seeking an additional $1.0 million in departmental outputs through Appropriation Bill (No. 3) 2016-17.

These relate to measures outlined in the Mid-Year Economic and Fiscal Outlook
2016-17 for the Regional Broadband Scheme, and investigations related to the Royal Commission into Trade Union Governance and Corruption.

Accordingly, whilst there has been no significant change to the strategic direction of the ACCC from that outlined in the Portfolio Budget Statements 2016-17 (pages 69-72), an additional priority for 2016-17 is compliance with, and enforcement of, the Competition and Consumer Act 2010 (CCA) in the commercial construction sector.

1.2Entity resource statement

The Entity Resource Statement details the resourcing for the ACCC at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2016-17 Budget year, including variations through Appropriation Bills No. 3, Special Appropriations and Special Accounts.

Table 1.1: ACCC resource statement — Additional Estimates for 2016-17 as at Additional Estimates February 2017

Prepared on a resourcing (that is, appropriations available) basis.

Please note: All figures shown above are GST exclusive - these may not match figures in the cash flow statement. The above does not include Other Trust Monies - refer Table 3.1 for these details.

(a)Appropriation Act (No. 1) 2016-2017 and Appropriation Bill (No. 3) 2016-2017

(b)No funds were subject to administrative quarantine by Finance or withheld under section 51 of the Public Governance, Performance and Accountability Act 2013.

(c)Estimated retained revenue receipts under section 74 of the PGPA Act.

(e)Appropriation Act (No. 2) 2016-17.

(f)For 2016-17, excludes $11.6m subject to administrative quarantine by Finance or withheld under section 51 of the Public Governance, Performance and Accountability Act 2013.

(g)Relates to repayments not provided for under other appropriations through section 77 of the PGPA Act.

1.3Entity Measures

Table 1.2 summarises new Government measures taken since the 2016-17 Budget. The table is split into revenue, expense and capital measures, with the affected program identified.

Table 1.2: Entity 2016-17 measures since Budget

Prepared on a Government Financial Statistics (fiscal) basis

(a)This measure was announced in the Mid-Year Economic and Fiscal Outlook 2016-17 as a cross portfolio measure and has not previously appeared in a portfolio statement.

(b)This measure builds on the 2016-17 Budget measure titled Royal Commission into Trade Union Governance and Corruption - continuation of the joint police taskforce.

1.4Additional estimates and variations

The following table details the changes to the resourcing for the ACCC at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates resulting from new measures and other variations since the 2016-17 Budget in Appropriation Bills Nos. 3 and4.